Thornton Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP. 1. Acquired $55,000 cash by issuing common stock. 2. Paid $7,400 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $3,400 to selling and administrative employees. 4. Paid wages of $6,400 to production workers. 5. Paid $4,900 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,500 estimated salvage value and a two-year useful life. 6. Paid $9,400 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,400 estimated salvage value and a two-year useful life. 7. Sold inventory to customers for $25,200 that had cost $13,300 to make. Required How these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model as indicated here. The first event is recorded as an example. (Enter decreases to account balances with a minus sign.) Income Statement Event No. Balance Sheet Assets Manuf. Office Cash + Inventory + Equip. Furn. 55,000 + + + = Equity Common + stock 55,000 + Ret. Ear. Rev. Exp. = Net Inc. 1 + = 2 + + = + = 3 + + + + 4 + + + = 5a + + = + 5b + + + = + + = + = + + + + + + 6b + + = + = 7a + + = + 7b + + = = Total 55,000 + 0 + 0 + 0 = 55,000 + 01 0 0 = 0